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New Plan to Cut Some Mortgage Balances

By

Nick Timiraos and

James R. Hagerty

Updated March 25, 2010 12:01 a.m. ET

The White House will announce Friday an expansion of its foreclosure-prevention efforts to include reducing mortgage loan balances for some borrowers, a controversial step that policy makers have long resisted, people familiar with the plans said.

The revisions, which will also include temporary help for unemployed borrowers, serve as a recognition that the administration 's foreclosure rescue plan hasn't kept pace with the rising...

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